Offshore Trust Asset Protection Services
Many consider the offshore trust as the legal tool that offers the strongest asset protection worldwide. When filed in the proper jurisdiction, such as the Cook Islands, we agree. Our trusts are US Grantor Trusts and as such, you are not required to go through the complicated reporting requirements that are necessary for many other kinds of offshore trusts. Also, since our trusts are grantor trusts and do not generally start out as irrevocable trusts you do not have to be as concerned about gift tax consequences when your assets are placed in the trusts. Be wary of many of the offshore trusts, as a gift tax of 35% may have to be paid to the IRS. The trust can have a trust company, individual or private IBC as the trustee. The trust can also have all of the US estate tax provisions, such as A and B trusts and beneficiaries that a domestic trust has. Since the trust is in another jurisdiction, if the US courts order the trustee (who is not you) to bring back the assets the trustee can refuse to comply. Thus your assets are safe and secure.
We use Cook Islands, south of Hawaii, a preferred trust jurisdiction. The have superior asset protection provisions at a very affordable price. When you form your Cook Island trust you will receive a trust deed and a certificate showing the date formed and the name of the trust. This shows proof of formation and allows the trust to benefit from the favorable trust laws in the Cook Islands. We typically establish the trust so that a Nevis LLC is inside the trust. You are the manager of the Nevis LLC and the bank accounts are inside of the Nevis LLC. This way you have complete control of accounts until the "bad thing" happens. Once an event of legal duress occurs, and the assets would be taken by the courts, the licensed, bonded trustee steps in to protect your assets. The laws of Nevis are a very close copy of the laws of The Cook Islands. Nevis Trust Laws require that any plaintiff post a $25,000 bond before they can commence legal action against your trust. Call us for more information.
Offshore Trust Asset Protection Service Benefits
Many attorneys claim that if you want to be 99.9% judgment proof, then an offshore asset protection trust is the way to go.
When the offshore trust is properly established and maintained, case law history shows that your assets are safe. As mentioned, the offshore asset protection trust service will contain a few other key components, including offshore companies which will give you more flexibility with the control over your assets. In some cases a court could determine that a degree of control over your assets is the same as owning them and award those assets to a creditor. In the case using both offshore trusts and offshore companies in your asset protection service plan will be entrusted to your experienced and reputable trustee. When the legal battle is over you resume control over your asset protection service entities and the finances they contain.